CBD Oil Market Size

CBD Oil Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

CANNABIOL (CBD) is a new substance that has been found in the cannabis plant. It has many uses. Its production is set to grow at a CAGR of 9.4 per cent from 2025 to 2035. The acceptance of the health benefits of CBD oil and the growing demand from consumers for natural health and beauty products are behind this upward trend. Besides, the growth of e-commerce and the development of new products are improving the reach of the market and its attractiveness to consumers. Also helping the market to grow are the advances in extraction technology, which have improved product quality and consistency, and the regulatory changes, which are increasingly allowing the use of CBD in various applications. Charlotte’s Web, Canopy Growth and Aurora Cannabis are the big players. They are investing in research and development, marketing and the launch of new products to meet the varied needs of consumers. These efforts are not only helping them consolidate their positions in the market but also contributing to the overall growth of the CBD industry.

Regional Market Size

Regional Deep Dive

The CBD (cannabidiol) oil market is experiencing a substantial growth in various regions, owing to the increasing awareness of the health benefits of this oil, the changing regulatory environment and the rising product innovation. North America, especially the U.S., has a robust legal framework that supports both medical and recreational cannabis, leading to a wide range of CBD products. In Europe, the market is characterized by varying regulations across countries and a growing acceptance of the use of CBD in health and beauty products. The Asia-Pacific region is experiencing a gradual shift toward legalization, with countries like Australia and New Zealand leading the way. The Middle East and Africa have the least developed markets, owing to the cultural stigma against cannabis. Latin America, however, is emerging as a promising market, driven by the rising popularity of natural health products.

North America

• In the United States, the 2018 Farm Bill legalized hemp-derived CBD, causing a surge in the market and bringing in major retailers like CVS and Walgreens.
• The industry has developed, and now besides the usual CBD-rich oils, we have tinctures, tinctures for the eyes, tinctures for the skin, tinctures for the joints, tinctures for the nerves, tinctures for the joints and tendons, tinctures for the nervous system, tinctures for the eyes, tinctures for
• Currently the FDA is examining a regulatory framework for CBD products, which could have a significant impact on the market and on consumer trust in the safety of these products.

Europe

• The European Food Safety Authority (EFSA) has been evaluating CBD as a novel food, which could lead to more definite regulations and a higher degree of confidence in the safety of CBD products on the market.
• The leading countries in the sale of CBD products are the United Kingdom and Germany, where companies like Love Hemp and CBD Vital have developed their market position with the help of their original product range.
• The body shop has been a pioneer in the use of CBD for its products and has been a trailblazer for the acceptance of CBD in the beauty and health sectors.

Asia-Pacific

• CBD is also set to be regulated as a prescription medicine in Australia, which will open up new opportunities for the market.
• New Zealand’s recent legalization of medical cannabis has sparked increased interest among local and international companies, with companies like Helius Therapeutics entering the market.
• The attitude of the public to cannabis is changing, particularly in the East Asian countries of Japan and South Korea.

MEA

• The United Arab Emirates recently passed a law permitting the sale of products containing cannabidiol (CBD), a major step in the region’s policy towards cannabis-derived products.
• The conservative attitude towards cannabis in many countries in the Middle East is a major barrier to the acceptance of its medical use. However, the therapeutic potential of cannabidiol is beginning to attract attention, particularly for the treatment of pain.
• CBD products are beginning to be developed by local companies, and the upcoming Dubai Cannabis Expo will be a platform for showcasing the potential of this market.

Latin America

• Colombia, in fact, is a leader in the cultivation and export of hemp.
• The natural health trend has also contributed to the rising popularity of cannabidiol products, and the market is now beginning to respond with local producers such as Cannabidiol Brasil.
• Moreover, the acceptance of alternative medicine is growing, which could lead to a greater use of cannabis in traditional medicine.

Did You Know?

“CBD oil is derived from hemp, which contains less than 0.3% THC, and therefore is non-psychoactive and legal in many places where cannabis is not.” — National Institute on Drug Abuse (NIDA)

Segmental Market Size

This market is currently undergoing a strong boom, driven by the increasing awareness of the public about the potential benefits of cannabidiol. The rise in the prevalence of chronic pain and anxiety disorders, and the increasing preference for natural and organic health products are also driving demand. Moreover, in many regions, especially North America and Europe, regulations are changing to allow the use of cannabidiol, thus further increasing the market opportunities.

In the United States, the use of hemp-derived CBD oil is now in its second generation of acceptance, and companies such as Charlotte’s Web and Medterra are at the forefront of product development and market penetration. CBD has become an integral part of dietary supplements, cosmetics and food and beverage products, showcasing its versatility across a variety of industries. In the United States, the emphasis on mental health and well-being, combined with the drive for sustainability, has accelerated interest in the product. CO2 extraction and the development of new formulations have contributed to the quality of the products and the trust of consumers.

Future Outlook

The CBD oil market is expected to grow significantly from 2024 to 2035. The market value is expected to increase from $8.33 billion to $22.50 billion, which translates into a strong CAGR of 9.46%. The growing awareness of the health benefits of cannabidiol and the increasing acceptance of cannabis-based products are expected to fuel this growth. In addition, more and more countries and states are expected to legalize and regulate. It is expected that in 2035 about 15 to 20 percent of the population of the key markets will regularly use CBD oil for medical and / or therapeutic purposes.

This growth is being fueled by new extraction methods that are improving the quality of the products and lowering their cost, which makes them more accessible to consumers. In addition, the emergence of e-commerce is making it easier to access a wider range of CBD products, which is driving market growth. Also, governments are beginning to recognize the potential benefits of CBD, which is leading to more favourable regulations and research and development. Also, the integration of CBD into food and beverages, cosmetics and health supplements will help to diversify the market and to increase the dynamic.